Second Interim Results

Wilmington Group Plc
11 April 2002


Wilmington Group plc

11th April 2002



Wilmington Group plc

Second Interim results for the 12 months to 28th February 2002


        *     Solid organic sales growth in difficult markets

        *     Dependable performance from professional information and training

        *     Advertising sales slightly ahead but yields under pressure

        *     Strong cash flow

        *     Good financial position and well placed to expand

Charles Brady, Chief Executive of Wilmington Group, said:


'In difficult market conditions, Wilmington has continued to develop and has
delivered its ninth successive year of sales growth. We have benefited from the
defensive characteristics of our professional information and training
activities. We have undertaken a significant cost reduction exercise which has
achieved savings of £2.0 million in a full year. However advertising yields
still remain under pressure.


Whilst the economic environment is currently having a negative impact on the
media sector this should provide us with opportunities to meet our objective of
long term profitable growth. We are particularly well placed to take advantage
of our strong financial position and the significant bank facilities at our
disposal. We therefore remain cautiously optimistic about our prospects in the
longer term.'


For further information please contact:


Brian Gilbert, Executive Chairman

Wilmington Group plc                         Tel: [phone]


Charles Brady, Chief Executive

Wilmington Group plc                          Tel: [phone]


Chairman's Statement


Second interim results for the 12 months to 28th February 2002


I have pleasure in announcing the second interim results of Wilmington Group plc
for the 12 months to 28th February 2002.


As reported in last year's Annual Report, the financial year end of the company
has been changed to 30th June in order to address the uneven split of profits,
which has previously been significantly weighted to the second half of the year.
As a result, this statement covers the unaudited interim results for the 12
months to 28th February 2002 and our full Report and Accounts will cover the 16
months to 30th June 2002.


I am delighted that the Group has delivered its ninth successive year of sales
growth. Turnover during the 12 month period increased by 9.3% to £79.6 million
from £72.8 million principally from development of the existing portfolio.
However, demanding trading conditions, particularly in advertising based
products, has resulted in a reduction in profit before interest, tax and
amortisation (Adjusted Profit) to £10.1 million from £12.1 million.


The majority of our adjusted profits derive from professional information and
training activities and these have increased in the period from £8.4 million to
£8.9 million. However, 31% of revenues derive from advertising in magazines
where yields have been under intensive pressure. Overall, the revenues from
these advertising products were slightly ahead, but profits were down sharply
when compared with the same period last year.


Operating profit fell from £9.2 million to £6.8 million in the period. Adjusted
earnings per share, which is calculated before amortisation of goodwill and
intangible assets, fell from 10.17p to 7.58p. Basic earnings per share fell from
7.02p to 3.63p.


Your Board remains committed to a progressive dividend policy and despite the
reduction in profits during the period has declared an interim dividend of 2.50p
per ordinary share for the 12 months to 28th February 2002 (2001: final dividend
2.50p). This will be paid on 22nd May 2002 to shareholders on the register on
19th April 2002. A further dividend will be proposed with the results for the 16
months to 30th June 2002.


A fundamental pillar of our business is its ability to generate strong cash
flow. Operating cash inflow of £10.6 million in the period was 105% of operating
profit before amortisation compared with 94% last year.


Business Review


Despite the current economic climate, we continue to make further progress in
our strategy for long-term growth. This strategy is based on the ownership of
quality communications assets that meet the information requirements of
professional business communities and generate sustainable, profitable revenue
streams. We serve these markets through magazines, databases, electronic
information, training, events and other media.


Although no major acquisitions were made during the last twelve months, previous
acquisitions have been integrated well into the Group. We continue to pursue
suitable new opportunities that would complement the range and diversity of our
existing revenue streams. Given the current market environment, the Board
believes that Wilmington will be able to use its strong financial position in
the future to purchase assets at attractive prices.


Revenues from our professional information and training activities were 14%
ahead of last year increasing from £35.4 million to £40.2 million. Our
information business has been augmented by our prior year acquisition of Hollis,
a publisher of databases for the marketing and PR industry, and Beechwood, a
publisher of databases for the healthcare industry. Our training business has
strong defensive qualities and is based predominantly on the compulsory training
of UK solicitors, an area which has continued to expand. In addition a new range
of professional courses for the international banking community has gathered
pace. Overall margins in these businesses have reduced as a result of a
different turnover mix, largely influenced by the new revenue sources detailed
above.


As regards our magazine business, even before the events of 11 September 2001,
we believed that pressure on advertising yields would increase. We therefore
implemented a significant cost reduction exercise, which achieved savings in the
region of £2 million in a full year at a cost of less than £0.5 million. In
addition, we are in the process of comprehensively reviewing our magazine
publishing activities.

These are challenging times and I would like to thank my fellow directors,
senior management and the Group's employees for their continuing efforts and
commitment. In February, we announced that Charles Brady had been appointed
Chief Executive of the Group. Charles has demonstrable management and leadership
skill and I believe he has the right skills to take the business forward.
Charles takes over from Rory Conwell, who stepped down from the position of
Chief Executive for personal reasons. I am pleased to say that Rory will remain
on the Board with specific responsibility for the development and expansion of
our business information activities.

Outlook


We are a broadly based Group with valuable assets and strong cash flow, much of
it deriving from subscriptions and mandatory training activities. I am pleased
to report that these businesses continue to trade well. In contrast, difficult
trading conditions persist in our magazines' markets where we are heavily
dependent on advertising revenues. We continue to review the cost base of our
operations.

Looking ahead, Wilmington remains committed to long term growth and, to help us
meet our objective, a review of our magazine portfolio is well under way. We are
looking to focus on markets where we believe there is good growth potential and
where we believe we can present a resilient product offering in the sector.

The market place provides us with many opportunities for growth and we are
particularly well placed to take advantage of these given our strong financial
position and the significant bank facilities at our disposal. We therefore
remain cautiously optimistic about our prospects in the longer term.






Brian Gilbert

Chairman

11th April 2002








Consolidated Profit and Loss Account

                                                                        Twelve months                Year
                                                                                Ended               Ended
                                                                        28th February       28th February
                                                                                 2002                2001
                                                                          (unaudited)           (audited)
                                                                                £'000               £'000

                                                         Notes
Turnover                                                   2                   79,562              72,769

Cost of sales                                                                (28,471)            (25,026)

Gross profit                                                                   51,091              47,743

Operating expenses                                                           (40,986)            (35,630)

Operating profit before amortisation of goodwill
and intangible assets                                                          10,105              12,113

Amortisation of goodwill and intangible assets                                (3,256)             (2,936)

Operating profit                                                                6,849               9,177

Interest payable and similar charges                                            (272)               (299)
Interest receivable and similar income                                             37                 203

Profit on ordinary activities before taxation              2                    6,614               9,081
Taxation                                                   3                  (2,744)             (2,846)

Profit on ordinary activities after taxation                                    3,870               6,235
Minority interests                                                              (917)               (566)

Profit for the period and attributable to
shareholders                                                                    2,953               5,669
Dividends                                                                     (2,037)             (2,030)

Retained profit for the period                                                    916               3,639

Earnings per ordinary share                                4                    3.63p               7.02p

Diluted earnings per ordinary share                        4                    3.61p               6.93p

Adjusted earnings per ordinary share                       5                    7.58p              10.17p



There were no recognised gains or losses in the twelve months ended 28th
February 2002 (2001 - £Nil) other than those shown in the profit and loss
account.




Consolidated balance sheet



                                                                                As at                As at
                                                                        28th February        28th February
                                                                                 2002                 2001
                                                                          (unaudited)            (audited)
                                                                                £'000                £'000

Fixes assets
Goodwill and intangible assets                                                 53,172               52,760
Tangible assets                                                                11,209               11,463

                                                                               64,381               64,223

Current assets
Stock and work in progress                                                      1,520                1,540
Debtors                                                                        19,151               18,489
Cash at bank and in hand                                                          967                1,833

                                                                               21,638               21,862

Creditors: Amounts falling due within one year                               (22,320)             (23,691)

Net current (liabilities)                                                       (682)              (1,829)

Total assets less current liabilities                                          63,699               62,394

Creditors: Amounts falling due after more than one
year                                                                          (2,091)              (2,094)

Net assets                                                                     61,608               60,300

Capital and reserves
Called up share capital                                                         4,065                4,057
Share premium account                                                          39,936               39,792
Other reserves                                                                    949                  949
Profit and loss account                                                        15,375               14,459

Shareholders' funds                                                            60,325               59,257

Minority interests                                                              1,283                1,043

                                                                               61,608               60,300





Consolidated cash flow

                                                                        Twelve months           Year ended
                                                                                ended        28th February
                                                                   28th February 2002                 2001
                                                                          (unaudited)            (audited)
                                                                                £'000                £'000
                                                        Notes

Reconciliation of operating profit to net cash
inflow from operating activities:
Operating profit                                                                6,849                9,177
Adjustment for items not involving the flow of
funds                                                                           5,062                4,237
Net working capital movement                              6                   (1,263)              (2,053)

Net cash inflow from operating activities                                      10,648               11,361

Returns on investment and servicing of finance
Interest received                                                                  37                  203
Interest paid                                                                   (272)                (790)

Net cash outflow                                                                (235)                (587)

Taxation
Tax paid                                                                      (3,229)              (3,235)

Capital expenditure and financial investment
Purchase of goodwill and intangible assets                                    (3,226)              (1,547)
Purchase of tangible fixed assets                                             (1,747)              (5,375)
Sales of tangible fixed assets                                                    195                  792

Net cash outflow                                                              (4,778)              (6,130)

Acquisitions and disposals
Purchase of subsidiary undertakings                                             (639)              (3,313)

Equity dividends paid                                                         (2,513)              (1,521)

Cash outflow before financing                                                   (746)              (3,425)

Financing
Issue of shares                                                                   152               28,727
Repayment of bank loan                                                              -             (24,000)

                                                                                  152                4,727

(Decrease)/increase in cash                                                     (594)                1,302

Reconciliation of net cash flow to movement in net
(debt)/cash
(Decrease)/increase in cash in the period                                       (594)              (1,302)
Cash outflow from decrease in net debt                                              -               24,000

Change in net (debt)/cash resulting from cash flow                              (594)               25,302
                                                                                
Arising on acquisition                                                             49                  885
Net cash (debt) brought forward                                                 1,512             (24,675)

Net cash carried forward                                                          967                1,512



Notes

 1. Nature of information

    The interim accounts for the twelve months ended 28th February 2002 have
    been neither audited nor reviewed by the Company's auditors. The comparative
    figures for the year ended 28th February 2001 are not the Company's
    statutory accounts within the meaning of Section 240 of the Companies Act
    1985 but are abridged from such accounts which have been reported on by the
    Company's auditors and delivered to the Registrar of Companies. The report
    of the auditors on such accounts was unqualified and did not contain any
    statement under Sections 237(2) or 273(3) of the Companies Act 1985.

    The interim accounts are prepared on the basis of the accounting policies
    set out in the accounts of the Group for the year ended 28th February 2001.


 2. Segmental information

                                                                     Twelve months               Year ended
                                                                             ended            28th February
                                                                     28th February                     2001
                                                                              2002                (audited)
                                                                       (unaudited)                    £'000
                                                                             £'000

    Turnover:
    Information                                                             20,032                   17,791
    Magazine publishing                                                     99,379                   37,388
    Professional training                                                   20,151                   17,590

                                                                            79,562                   72,769
    Operating profit:
    Information                                                              4,015                    4,160
    Magazine publishing                                                      1,206                    3,737
    Professional training                                                    4,884                    4,216

    Operating profit before amortisation:                                   10,105                   12,113

    Less: amortisation                                                     (3,256)                  (2,936)

    Operating profit                                                         6,849                    9,177
    Less: interest                                                           (235)                     (96)

    Profit on ordinary activities before taxation                            6,614                    9,081



 3. Taxation


There is a corporation taxation charge for the twelve months ended 28th February
2002 of £2,744,000 (2001 - £2,846,000) based on the Group's profits for the
period at current corporation tax rates. The tax charge as a percentage of
profit before taxation is 41.5% because of the disallowable amortisation of
certain intangibles.



4. Earnings per ordinary share

Earnings per share is calculated on the basis of profit on ordinary activities
after taxation and minority interests divided by 81,246,974 (2001 - 80,734,060)
being the weighted average number of ordinary shares of 5p in issue.

The diluted earnings per share is calculated on the basis of profit on ordinary
activities after taxation and minority interests divided by 81,696,345 (2001 -
81,807,287) being the diluted weighted average number of ordinary shares of 5p
in issue.

5. Adjusted earnings per ordinary share


In order to show results on a comparable basis to prior years before adoption of
FRS10 'Goodwill and Intangible Assets', an adjusted earnings per ordinary share
has been calculated using profit after taxation and minority interests but
before amortisation of goodwill and intangible assets of £6,162,000 (2001 -
£8,210,000).


 6. Net working capital movement

                                                                      Twelve months            Year ended
                                                                              ended         28th February
                                                                      28th February                  2001
                                                                               2002             (audited)
                                                                        (unaudited)
                                                                              £'000                 £'000

Decrease/(increase) in stock and work in progress                                20                 (737)
(Increase) in debtors                                                         (486)               (2,546)
(Decrease)/increase in creditors                                              (797)                 1,230

                                                                            (1,263)               (2,053)


Copies of this report are available from the Company's registered office at
Paulton House, 8 Shepherdess Walk, London N1 7LB.








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